Mother's Day May Boost Declining Restaurant Sales

CHICAGOWhile U.S. restaurants are expected to show dismal same-store sales for the first quarter 2013, Mothers Day will help boost restaurant sales because it is one of the most popular holidays for dining out, according to the National Restaurant Association (NRA).

More than 25% of U.S. adults will celebrate the occasion by eating at a restaurant and 7% will turn to takeout or delivered meals. This equates to 80 million people visiting eateries with most celebrating at dinner, a third at lunch and 30% at brunch and almost a quarter plan more than one restaurant meal.

As reported the Chicago Tribune, the expected boost is good news given eatery sales advanced at a mere 1% after surging 6.3% during the same quarter in 2012, according to a forecast from Thomas Reuters. Although the restaurant industry is projected to exceed $660 billion in 2013, the report showed bitter temperatures slowed restaurant traffic down as well as cost-conscious consumers and rising menu prices resulting from food cost inflation.

Quick-service establishments saw a 1.6% boost over the first quarter, down from 7.5% in the previous year. Of quick-service restaurants, Starbucks had the strongest comparisons with a 6% increase, but failed to reach its 8% mark from the first quarter of 2012. Burger King showed a 1.4% slide in same-store sales.

The casual-dining sector had even worse results, falling 0.6% after rising 2.7% a year earlier. Darden was the weakest performer, held down by the 6.6% dive in sales from its Red Lobster brand. The seafood chain is struggling to grow sales with consumers reluctant to spend, perceptions about quality and a changing menu and pricing.